Gold's rebound shows underlying strength but now approaches a key resistance zone, where a decisive move will determine continuation higher or renewed downside pressure.
Rising Treasury yields put pressure on gold markets.
The fear from March seems to be comfortably in the rear-view mirror as US equities push towards fresh all-time highs. Despite the worry in many of the headlines indicating that the scenario around Iran isn't quite at a head, markets seem to hold less worry around the matter as there's been a massive recovery in risk and this is something that's shown through gold, Bitcoin and stocks.
The gold market sees a bit of pressure on Wednesday, as the recent action is so strong that a pullback makes a certain amount of sense.
Gold retreats slightly, holds range as traders weigh Fed outlook and US-Iran talks hopes
The price of gold rose to 4,800 USD per troy ounce on Wednesday, with the local trend gaining strength. The precious metal is supported by expectations of a possible agreement between the US and Iran, which would reduce the risks of an energy-driven inflationary shock.
As Donald Trump signaled a willingness to resume talks with Iran, the market added more advance with Intraday prices closing to the 4785-800 resistance zone. As we see over the chart, the market could hold a trading zone towards 4700 before advancing back again toward 4860.
Gold (XAU/USD) takes a breather at $4,815 after a failed attempt at the $4,860 resistance. Discover how the resumption of US-Iran diplomacy in Pakistan is reshaping the safe-haven trade.
Saudi Arabia Gold price today: Gold falls, according to FXStreet data
Pakistan Gold price today: Gold falls, according to FXStreet data
India Gold price today: Gold falls, according to FXStreet data
Malaysia Gold price today: Gold falls, according to FXStreet data